Moog Inc. Reports Record Sales and Continued Margin Expansion for Second Quarter 2024
"The second quarter of 2024 was an exceptional quarter from a sales and earnings perspective," said
(in millions, except per share results) |
Three Months Ended |
||||||||
|
Q2 2024 |
Q2 2023 |
Deltas |
||||||
Net sales |
$ |
930 |
|
$ |
837 |
|
|
11 |
% |
Operating margin |
|
12.0 |
% |
|
10.0 |
% |
200 bps |
||
Adjusted operating margin |
|
13.6 |
% |
|
10.4 |
% |
320 bps |
||
Diluted net earnings per share |
$ |
1.86 |
|
$ |
1.34 |
|
|
39 |
% |
Adjusted diluted net earnings per share |
$ |
2.19 |
|
$ |
1.42 |
|
|
54 |
% |
Net cash used by operating activities |
$ |
(44 |
) |
$ |
(41 |
) |
$ |
(3 |
) |
Free cash flow |
$ |
(84 |
) |
$ |
(101 |
) |
$ |
17 |
|
See the reconciliations of adjusted financial results and free cash flow to reported results included in the financial statements herein for the quarters ended |
Quarter Highlights
-
Net sales of
$930 million increased 11% compared to the prior year's quarter, with increases in all four segments, including a 26% increase in Commercial Aircraft.
- Operating margin of 12.0% increased 200 basis points. Business performance across all segments contributed an incremental 165 basis points. Also, the current quarter included a 150 basis point benefit from the Employee Retention Credit associated with the CARES Act. The current quarter also included 115 basis points of higher impairments and restructuring.
- Adjusted operating margin of 13.6% increased 320 basis points, driven by the underlying business performance, as well as the Employee Retention Credit.
-
Diluted earnings per share of
$1.86 increased 39% due to the higher operating profit and the Employee Retention Credit, partially offset by the current quarter's restructuring and impairment charges.
-
Adjusted diluted earnings per share of
$2.19 increased 54%, reflecting earnings associated from higher sales across all of our segments and the Employee Retention Credit.
-
Free cash flow improved by
$17 million as compared to last year due to lower capital expenditures.
Quarter Results
Sales in the second quarter of 2024 increased across all segments compared to the second quarter of 2023. Commercial Aircraft sales increased 26% to
Operating margin increased 200 basis points to 12.0% in the second quarter of 2024 compared to the second quarter of 2023. Space and Defense operating margin increased 460 basis points to 15.8% due to improved performance on space vehicle programs and the benefit associated with the Employee Retention Credit. Commercial Aircraft operating margin increased 250 basis points to 12.0% due to pricing and higher sales volumes across our entire book of business. Industrial operating margin increased 110 basis points to 11.1%, as the Employee Retention Credit and benefits from pricing initiatives were partially offset by higher amounts of restructuring charges. Military Aircraft operating margin decreased 60 basis points to 8.3%, as impairment and restructuring charges more than offset the gain from the sale of a mature product line.
The current quarter includes
Twelve-month backlog increased 9% to a record level of
Free cash flow in the second quarter was a use of cash of
2024 Financial Guidance
"Fiscal year 2024 is shaping up to be another great year of financial performance, and we're on track to achieve our long-term financial targets," said
(in millions, except per share results) |
FY 2024 Guidance |
|||||
|
Current |
Previous |
||||
Net sales |
$ |
3,550 |
|
$ |
3,500 |
|
Operating margin |
|
11.9 |
% |
|
12.0 |
% |
Adjusted operating margin |
|
12.4 |
% |
|
12.0 |
% |
Diluted net earnings per share* |
$ |
6.87 |
|
$ |
6.86 |
|
Adjusted diluted net earnings per share* |
$ |
7.25 |
|
$ |
6.90 |
|
*Diluted net earnings per share figures for 2024 are forecasted to be within range of +/- |
When the company provides adjusted, non-GAAP figures on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort.
Conference call information
In conjunction with today’s release,
Cautionary Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which can be identified by words such as: “may,” “will,” “should,” “believes,” “expects,” “expected,” “intends,” “plans,” “projects,” “approximate,” “estimates,” “predicts,” “potential,” “outlook,” “forecast,” “anticipates,” “presume,” “assume” and other words and terms of similar meaning (including their negative counterparts or other various or comparable terminology). These forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995, are neither historical facts nor guarantees of future performance and are subject to several factors, risks and uncertainties, the impact or occurrence of which could cause actual results to differ materially from the expected results described in the forward-looking statements.
Although it is not possible to create a comprehensive list of all factors that may cause our actual results to differ from the results expressed or implied by our forward-looking statements or that may affect our future results, some of these factors and other risks and uncertainties are described in Item 1A “Risk Factors” of our Annual Report on Form 10-K and in our other periodic filings with the
While we believe we have identified and discussed in our
|
||||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) |
||||||||||||||
(dollars in thousands, except per share data) |
||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||
|
|
|
|
|
|
|
|
|
||||||
Net sales |
|
$ |
930,303 |
|
$ |
836,792 |
|
|
$ |
1,787,153 |
|
$ |
1,596,895 |
|
Cost of sales |
|
|
663,350 |
|
|
615,477 |
|
|
|
1,287,001 |
|
|
1,171,894 |
|
Inventory write-down |
|
|
175 |
|
|
— |
|
|
|
175 |
|
|
— |
|
Gross profit |
|
|
266,778 |
|
|
221,315 |
|
|
|
499,977 |
|
|
425,001 |
|
Research and development |
|
|
28,382 |
|
|
26,743 |
|
|
|
58,961 |
|
|
50,605 |
|
Selling, general and administrative |
|
|
124,961 |
|
|
116,695 |
|
|
|
243,686 |
|
|
229,860 |
|
Interest |
|
|
18,003 |
|
|
14,963 |
|
|
|
34,697 |
|
|
28,095 |
|
Asset impairment |
|
|
6,750 |
|
|
1,219 |
|
|
|
6,750 |
|
|
1,219 |
|
Restructuring |
|
|
6,750 |
|
|
2,017 |
|
|
|
8,639 |
|
|
3,095 |
|
Gain on sale of buildings |
|
|
— |
|
|
(527 |
) |
|
|
— |
|
|
(10,030 |
) |
Other |
|
|
3,183 |
|
|
3,901 |
|
|
|
5,884 |
|
|
5,552 |
|
Earnings before income taxes |
|
|
78,749 |
|
|
56,304 |
|
|
|
141,360 |
|
|
116,605 |
|
Income taxes |
|
|
18,746 |
|
|
13,291 |
|
|
|
33,545 |
|
|
27,576 |
|
Net earnings |
|
$ |
60,003 |
|
$ |
43,013 |
|
|
$ |
107,815 |
|
$ |
89,029 |
|
|
|
|
|
|
|
|
|
|
||||||
Net earnings per share |
|
|
|
|
|
|
|
|
||||||
Basic |
|
$ |
1.88 |
|
$ |
1.35 |
|
|
$ |
3.38 |
|
$ |
2.80 |
|
Diluted |
|
$ |
1.86 |
|
$ |
1.34 |
|
|
$ |
3.34 |
|
$ |
2.79 |
|
|
|
|
|
|
|
|
|
|
||||||
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
||||||
Basic |
|
|
31,967,828 |
|
|
31,848,140 |
|
|
|
31,934,965 |
|
|
31,797,071 |
|
Diluted |
|
|
32,335,418 |
|
|
32,043,910 |
|
|
|
32,295,762 |
|
|
31,959,315 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
RECONCILIATION TO ADJUSTED NET EARNINGS BEFORE TAXES, INCOMES TAXES, NET EARNINGS AND DILUTED NET EARNINGS PER SHARE (UNAUDITED) |
||||||||||||||||
(dollars in thousands) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
As Reported: |
|
|
|
|
|
|
|
|
||||||||
Earnings before income taxes |
|
$ |
78,749 |
|
|
$ |
56,304 |
|
|
$ |
141,360 |
|
|
$ |
116,605 |
|
Income taxes |
|
|
18,746 |
|
|
|
13,291 |
|
|
|
33,545 |
|
|
|
27,576 |
|
Effective income tax rate |
|
|
23.8 |
% |
|
|
23.6 |
% |
|
|
23.7 |
% |
|
|
23.6 |
% |
Net earnings |
|
|
60,003 |
|
|
|
43,013 |
|
|
|
107,815 |
|
|
|
89,029 |
|
Diluted net earnings per share |
|
$ |
1.86 |
|
|
$ |
1.34 |
|
|
$ |
3.34 |
|
|
$ |
2.79 |
|
|
|
|
|
|
|
|
|
|
||||||||
Restructuring and Other Charges: |
|
|
|
|
|
|
|
|
||||||||
Earnings before income taxes |
|
$ |
7,590 |
|
|
$ |
2,611 |
|
|
$ |
9,479 |
|
|
$ |
4,144 |
|
Income taxes |
|
|
1,852 |
|
|
|
643 |
|
|
|
2,350 |
|
|
|
917 |
|
Net earnings |
|
|
5,738 |
|
|
|
1,968 |
|
|
|
7,129 |
|
|
|
3,227 |
|
Diluted net earnings per share |
|
$ |
0.18 |
|
|
$ |
0.06 |
|
|
$ |
0.22 |
|
|
$ |
0.10 |
|
|
|
|
|
|
|
|
|
|
||||||||
Asset Impairment: |
|
|
|
|
|
|
|
|
||||||||
Earnings before income taxes |
|
$ |
6,750 |
|
|
$ |
1,219 |
|
|
$ |
6,750 |
|
|
$ |
1,219 |
|
Income taxes |
|
|
1,593 |
|
|
|
283 |
|
|
|
1,593 |
|
|
|
283 |
|
Net earnings |
|
|
5,157 |
|
|
|
936 |
|
|
|
5,157 |
|
|
|
936 |
|
Diluted net earnings per share |
|
$ |
0.16 |
|
|
$ |
0.03 |
|
|
$ |
0.16 |
|
|
$ |
0.03 |
|
|
|
|
|
|
|
|
|
|
||||||||
Gain on Sale of Buildings: |
|
|
|
|
|
|
|
|
||||||||
Earnings before income taxes |
|
$ |
— |
|
|
$ |
(527 |
) |
|
$ |
— |
|
|
$ |
(10,030 |
) |
Income taxes |
|
|
— |
|
|
|
(100 |
) |
|
|
— |
|
|
|
(2,086 |
) |
Net earnings |
|
|
— |
|
|
|
(427 |
) |
|
|
— |
|
|
|
(7,944 |
) |
Diluted net earnings per share |
|
$ |
— |
|
|
$ |
(0.01 |
) |
|
$ |
— |
|
|
$ |
(0.25 |
) |
|
|
|
|
|
|
|
|
|
||||||||
As Adjusted: |
|
|
|
|
|
|
|
|
||||||||
Earnings before income taxes |
|
$ |
93,089 |
|
|
$ |
59,607 |
|
|
$ |
157,589 |
|
|
$ |
111,938 |
|
Income taxes |
|
|
22,191 |
|
|
|
14,117 |
|
|
|
37,488 |
|
|
|
26,690 |
|
Effective income tax rate |
|
|
23.8 |
% |
|
|
23.7 |
% |
|
|
23.8 |
% |
|
|
23.8 |
% |
Net earnings |
|
|
70,898 |
|
|
|
45,490 |
|
|
|
120,101 |
|
|
|
85,248 |
|
Diluted net earnings per share |
|
$ |
2.19 |
|
|
$ |
1.42 |
|
|
$ |
3.72 |
|
|
$ |
2.67 |
|
The diluted net earnings per share associated with the adjustments in the table above may not reconcile when totaled due to rounding. |
Results shown above have been adjusted to exclude impacts associated with the sale of buildings, asset impairments due to program termination and the devaluation of an investment, as well as restructuring and other charges related to continued portfolio shaping activities and the derecognition of revenue from the write-off of an unbilled receivable due to a program cancellation (
|
||||||||||||||||
CONSOLIDATED SALES AND OPERATING PROFIT (UNAUDITED) |
||||||||||||||||
(dollars in thousands) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net sales: |
|
|
|
|
|
|
|
|
||||||||
Space and Defense |
|
$ |
266,787 |
|
|
$ |
245,853 |
|
|
$ |
496,915 |
|
|
$ |
463,638 |
|
Military Aircraft |
|
|
202,500 |
|
|
|
182,753 |
|
|
|
388,744 |
|
|
|
360,553 |
|
Commercial Aircraft |
|
|
207,594 |
|
|
|
164,251 |
|
|
|
401,816 |
|
|
|
296,710 |
|
Industrial |
|
|
253,422 |
|
|
|
243,935 |
|
|
|
499,678 |
|
|
|
475,994 |
|
Net sales |
|
$ |
930,303 |
|
|
$ |
836,792 |
|
|
$ |
1,787,153 |
|
|
$ |
1,596,895 |
|
Operating profit: |
|
|
|
|
|
|
|
|
||||||||
Space and Defense |
|
$ |
42,243 |
|
|
$ |
27,507 |
|
|
$ |
67,540 |
|
|
$ |
47,801 |
|
|
|
|
15.8 |
% |
|
|
11.2 |
% |
|
|
13.6 |
% |
|
|
10.3 |
% |
Military Aircraft |
|
|
16,769 |
|
|
|
16,181 |
|
|
|
36,358 |
|
|
|
31,382 |
|
|
|
|
8.3 |
% |
|
|
8.9 |
% |
|
|
9.4 |
% |
|
|
8.7 |
% |
Commercial Aircraft |
|
|
24,845 |
|
|
|
15,681 |
|
|
|
45,471 |
|
|
|
30,198 |
|
|
|
|
12.0 |
% |
|
|
9.5 |
% |
|
|
11.3 |
% |
|
|
10.2 |
% |
Industrial |
|
|
28,155 |
|
|
|
24,397 |
|
|
|
57,179 |
|
|
|
61,148 |
|
|
|
|
11.1 |
% |
|
|
10.0 |
% |
|
|
11.4 |
% |
|
|
12.8 |
% |
Total operating profit |
|
|
112,012 |
|
|
|
83,766 |
|
|
|
206,548 |
|
|
|
170,529 |
|
|
|
|
12.0 |
% |
|
|
10.0 |
% |
|
|
11.6 |
% |
|
|
10.7 |
% |
Deductions from operating profit: |
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
|
18,003 |
|
|
|
14,963 |
|
|
|
34,697 |
|
|
|
28,095 |
|
Equity-based compensation expense |
|
|
3,047 |
|
|
|
2,791 |
|
|
|
7,212 |
|
|
|
5,765 |
|
Non-service pension expense |
|
|
3,191 |
|
|
|
3,115 |
|
|
|
6,378 |
|
|
|
6,214 |
|
Corporate and other expenses, net |
|
|
9,022 |
|
|
|
6,593 |
|
|
|
16,901 |
|
|
|
13,850 |
|
Earnings before income taxes |
|
$ |
78,749 |
|
|
$ |
56,304 |
|
|
$ |
141,360 |
|
|
$ |
116,605 |
|
|
||||||||||||||||
RECONCILIATION TO ADJUSTED OPERATING PROFIT AND MARGINS (UNAUDITED) |
||||||||||||||||
(dollars in thousands) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Space and Defense operating profit - as reported |
|
$ |
42,243 |
|
|
$ |
27,507 |
|
|
$ |
67,540 |
|
|
$ |
47,801 |
|
Asset impairment |
|
|
304 |
|
|
|
219 |
|
|
|
304 |
|
|
|
219 |
|
Restructuring and other |
|
|
— |
|
|
|
1,105 |
|
|
|
— |
|
|
|
1,281 |
|
Space and Defense operating profit - as adjusted |
|
$ |
42,547 |
|
|
$ |
28,831 |
|
|
$ |
67,844 |
|
|
$ |
49,301 |
|
|
|
|
15.9 |
% |
|
|
11.7 |
% |
|
|
13.7 |
% |
|
|
10.6 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Military Aircraft operating profit - as reported |
|
$ |
16,769 |
|
|
$ |
16,181 |
|
|
$ |
36,358 |
|
|
$ |
31,382 |
|
Asset impairment |
|
|
6,446 |
|
|
|
1,000 |
|
|
|
6,446 |
|
|
|
1,000 |
|
Restructuring and other |
|
|
3,963 |
|
|
|
— |
|
|
|
3,963 |
|
|
|
— |
|
Military Aircraft operating profit - as adjusted |
|
$ |
27,178 |
|
|
$ |
17,181 |
|
|
$ |
46,767 |
|
|
$ |
32,382 |
|
|
|
|
13.4 |
% |
|
|
9.4 |
% |
|
|
12.0 |
% |
|
|
9.0 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Commercial Aircraft operating profit - as reported and adjusted |
|
$ |
24,845 |
|
|
$ |
15,681 |
|
|
$ |
45,471 |
|
|
$ |
30,198 |
|
|
|
|
12.0 |
% |
|
|
9.5 |
% |
|
|
11.3 |
% |
|
|
10.2 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Industrial operating profit - as reported |
|
$ |
28,155 |
|
|
$ |
24,397 |
|
|
$ |
57,179 |
|
|
$ |
61,148 |
|
Gain on sale of buildings |
|
|
— |
|
|
|
(527 |
) |
|
|
— |
|
|
|
(10,030 |
) |
Restructuring and other |
|
|
3,627 |
|
|
|
1,506 |
|
|
|
5,516 |
|
|
|
2,863 |
|
Industrial operating profit - as adjusted |
|
$ |
31,782 |
|
|
$ |
25,376 |
|
|
$ |
62,695 |
|
|
$ |
53,981 |
|
|
|
|
12.5 |
% |
|
|
10.4 |
% |
|
|
12.5 |
% |
|
|
11.3 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Total operating profit - as adjusted |
|
$ |
126,352 |
|
|
$ |
87,069 |
|
|
$ |
222,777 |
|
|
$ |
165,862 |
|
|
|
|
13.6 |
% |
|
|
10.4 |
% |
|
|
12.5 |
% |
|
|
10.4 |
% |
While management believes that these adjusted financial measures may be useful in evaluating the financial condition and results of operations of the Company, this information should be considered supplemental and is not a substitute for financial information prepared in accordance with GAAP.
|
||||||||
CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
||||||||
(dollars in thousands) |
||||||||
|
|
|
|
|
||||
ASSETS |
|
|
|
|
||||
Current assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
59,066 |
|
|
$ |
68,959 |
|
Restricted cash |
|
|
665 |
|
|
|
185 |
|
Receivables, net |
|
|
419,399 |
|
|
|
434,723 |
|
Unbilled receivables |
|
|
794,167 |
|
|
|
706,601 |
|
Inventories, net |
|
|
810,483 |
|
|
|
724,002 |
|
Prepaid expenses and other current assets |
|
|
73,165 |
|
|
|
50,862 |
|
Total current assets |
|
|
2,156,945 |
|
|
|
1,985,332 |
|
Property, plant and equipment, net |
|
|
869,303 |
|
|
|
814,696 |
|
Operating lease right-of-use assets |
|
|
57,074 |
|
|
|
56,067 |
|
|
|
|
828,469 |
|
|
|
821,301 |
|
Intangible assets, net |
|
|
68,876 |
|
|
|
71,637 |
|
Deferred income taxes |
|
|
9,063 |
|
|
|
8,749 |
|
Other assets |
|
|
49,390 |
|
|
|
50,254 |
|
Total assets |
|
$ |
4,039,120 |
|
|
$ |
3,808,036 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities |
|
|
|
|
||||
Accounts payable |
|
$ |
267,731 |
|
|
$ |
264,573 |
|
Accrued compensation |
|
|
73,961 |
|
|
|
111,154 |
|
Contract advances and progress billings |
|
|
404,876 |
|
|
|
377,977 |
|
Accrued liabilities and other |
|
|
257,960 |
|
|
|
211,769 |
|
Total current liabilities |
|
|
1,004,528 |
|
|
|
965,473 |
|
Long-term debt, excluding current installments |
|
|
948,615 |
|
|
|
863,092 |
|
Long-term pension and retirement obligations |
|
|
160,265 |
|
|
|
157,455 |
|
Deferred income taxes |
|
|
22,765 |
|
|
|
37,626 |
|
Other long-term liabilities |
|
|
149,688 |
|
|
|
148,303 |
|
Total liabilities |
|
|
2,285,861 |
|
|
|
2,171,949 |
|
Shareholders’ equity |
|
|
|
|
||||
Common stock - Class A |
|
|
43,826 |
|
|
|
43,822 |
|
Common stock - Class B |
|
|
7,454 |
|
|
|
7,458 |
|
Additional paid-in capital |
|
|
702,272 |
|
|
|
608,270 |
|
Retained earnings |
|
|
2,587,222 |
|
|
|
2,496,979 |
|
|
|
|
(1,071,558 |
) |
|
|
(1,057,938 |
) |
|
|
|
(153,295 |
) |
|
|
(114,769 |
) |
|
|
|
(129,709 |
) |
|
|
(93,126 |
) |
Accumulated other comprehensive loss |
|
|
(232,953 |
) |
|
|
(254,609 |
) |
Total shareholders’ equity |
|
|
1,753,259 |
|
|
|
1,636,087 |
|
Total liabilities and shareholders’ equity |
|
$ |
4,039,120 |
|
|
$ |
3,808,036 |
|
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
||||||||
(dollars in thousands) |
||||||||
|
|
Six Months Ended |
||||||
|
|
|
|
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
||||
Net earnings |
|
$ |
107,815 |
|
|
$ |
89,029 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation |
|
|
42,276 |
|
|
|
36,810 |
|
Amortization |
|
|
5,296 |
|
|
|
5,862 |
|
Deferred income taxes |
|
|
(17,805 |
) |
|
|
(9,970 |
) |
Equity-based compensation expense |
|
|
7,212 |
|
|
|
5,765 |
|
Gain on sale of buildings |
|
|
— |
|
|
|
(10,030 |
) |
Asset impairment and inventory write-down |
|
|
6,925 |
|
|
|
1,219 |
|
Other |
|
|
2,207 |
|
|
|
3,292 |
|
Changes in assets and liabilities providing (using) cash: |
|
|
|
|
||||
Receivables |
|
|
17,469 |
|
|
|
(10,836 |
) |
Unbilled receivables |
|
|
(86,197 |
) |
|
|
(65,840 |
) |
Inventories |
|
|
(77,396 |
) |
|
|
(72,346 |
) |
Accounts payable |
|
|
1,847 |
|
|
|
1,971 |
|
Contract advances and progress billings |
|
|
24,512 |
|
|
|
17,067 |
|
Accrued expenses |
|
|
903 |
|
|
|
(33,030 |
) |
Accrued income taxes |
|
|
10,833 |
|
|
|
11,965 |
|
Net pension and post retirement liabilities |
|
|
5,687 |
|
|
|
7,119 |
|
Other assets and liabilities |
|
|
(35,195 |
) |
|
|
(11,063 |
) |
Net cash provided (used) by operating activities |
|
|
16,389 |
|
|
|
(33,016 |
) |
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
||||
Acquisitions of businesses, net of cash acquired |
|
|
(5,911 |
) |
|
|
— |
|
Purchase of property, plant and equipment |
|
|
(77,530 |
) |
|
|
(89,743 |
) |
Net proceeds from businesses sold |
|
|
— |
|
|
|
959 |
|
Net proceeds from buildings sold |
|
|
— |
|
|
|
18,825 |
|
Other investing transactions |
|
|
(515 |
) |
|
|
(4,241 |
) |
Net cash used by investing activities |
|
|
(83,956 |
) |
|
|
(74,200 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
||||
Proceeds from revolving lines of credit |
|
|
509,500 |
|
|
|
503,232 |
|
Payments on revolving lines of credit |
|
|
(425,000 |
) |
|
|
(381,300 |
) |
Payments on long-term debt |
|
|
— |
|
|
|
(188 |
) |
Payments on finance lease obligations |
|
|
(2,741 |
) |
|
|
(1,899 |
) |
Payment of dividends |
|
|
(17,572 |
) |
|
|
(16,859 |
) |
Proceeds from sale of treasury stock |
|
|
7,579 |
|
|
|
9,148 |
|
Purchase of outstanding shares for treasury |
|
|
(20,238 |
) |
|
|
(20,457 |
) |
Proceeds from sale of stock held by SECT |
|
|
15,788 |
|
|
|
9,795 |
|
Purchase of stock held by SECT |
|
|
(9,407 |
) |
|
|
(7,221 |
) |
Other financing transactions |
|
|
— |
|
|
|
(2,024 |
) |
Net cash provided by financing activities |
|
|
57,909 |
|
|
|
92,227 |
|
Effect of exchange rate changes on cash |
|
|
245 |
|
|
|
5,410 |
|
Decrease in cash, cash equivalents and restricted cash |
|
|
(9,413 |
) |
|
|
(9,579 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
|
69,144 |
|
|
|
119,233 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
59,731 |
|
|
$ |
109,654 |
|
|
|
|
|
|
|
||||||||||||||||
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (UNAUDITED) |
||||||||||||||||
(dollars in thousands) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net cash provided (used) by operating activities |
|
$ |
(44,002 |
) |
|
$ |
(41,099 |
) |
|
$ |
16,389 |
|
|
$ |
(33,016 |
) |
Purchase of property, plant and equipment |
|
|
(40,114 |
) |
|
|
(59,618 |
) |
|
|
(77,530 |
) |
|
|
(89,743 |
) |
Free cash flow |
|
$ |
(84,116 |
) |
|
$ |
(100,717 |
) |
|
$ |
(61,141 |
) |
|
$ |
(122,759 |
) |
|
|
|
|
|
|
|
|
|
Free cash flow is defined as net cash provided (used) by operating activities less purchase of property, plant and equipment. Free cash flow is not a measure determined in accordance with GAAP and may not be comparable with the measures as used by other companies. However, management believes this adjusted financial measure may be useful in evaluating the liquidity, financial condition and results of operations of the Company. This information should be considered supplemental and is not a substitute for financial information prepared in accordance with GAAP.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240426142803/en/
Source: